Forced tipping in restaurants is prohibited

The government has forbidden hotels and restaurants from include service fees in the price of the meals they provide.

The Central Consumer Protection Authority (CCPA) recently issued an order prohibiting hotels and restaurants from automatically including service costs in invoices.

Following an increase in consumer complaints about restaurants demanding a forced gratuity, those rules were published.

The National Restaurant Association of India (NRAI) argued that a charge for services was “legal” until the government created a legal framework, and there was some confusion in the past when the Consumer Affairs Ministry asked restaurants and hotels not to charge a service charge. However, there were no clear guidelines at the time.

The most recent regulations are now crystal clear and grant customers the opportunity to file a complaint against any service fee charged with the National Consumer Helpline (NCH). For rapid and effective resolution, customers can now file a complaint electronically through the e-daakhil portal.

The guidelines say, “no hotels or restaurants shall add service charge automatically or by default in the bill.” It said there should be no service charge collection by any other name.

“No restriction on entry or provision of services based on a collection of service charge shall be imposed on consumers,” added the order.

The choice to pay a service charge is now up to the client; hotels and restaurants cannot force it.